FX.co ★ Gold, XAUUSD

Good afternoon, fellow traders. Keep writing diligently, keep journaling, and stay disciplined with your trading plan. In this update, I will re-create a trading plan and first analyze the market. As usual, my favorite instrument is gold or XAU/USD. The simple trend analysis I use is Moving Averages, Bollinger Bands, and MACD momentum. The details are as follows. I'll start with the H4 chart, where yesterday's price experienced a significant decline, breaking through the 4021 support level and dropping to 3983. This indicates that the price has successfully established a new lower low, potentially forming a further downtrend structure. This decline also confirms that the price remains below the 50-day Exponential Moving Average and the middle Bollinger Bands, indicating a bearish market. With the price position below these two dynamic indicators, it is highly likely that the price will continue its decline to test lower support levels. However, the MACD indicator currently indicates a slight weakening of selling momentum. After the histogram had previously consistently moved downwards below the signal line and below the zero line, it is now beginning to approach the signal line again. If the histogram breaks above the signal line, gold has the potential for a technical correction to seek a supply area around 4045. This area is precisely where I'm targeting resale opportunities, as the major trend is clearly bearish. Therefore, this correction isn't intended for a buy entry, but rather to obtain a more ideal sell price with optimal risk-reward. My conclusion is that the major trend for gold remains bearish, and this has been confirmed by several indicators I use, which show synchronized bearish signals. Therefore, my trading plan is as follows: remain focused on sell options or sell only. The entry point is around 4045, an area of dynamic resistance and strong supply. The stop-loss is placed at 4131 to anticipate a trend reversal, and the profit target is at 3925, the main target for further declines. Thank you, and see you in the next journal update.